Swift Foods halts Palawan poultry operations amid losses

Swift Foods Inc. is suspending its poultry-growing operations in Palawan after months of financial losses, as the company tries to contain losses amid economic pressures on the livestock and poultry industry.

In a regulatory filing on Wednesday, the company said its board of directors approved suspending broiler operations in the province, citing continued negative financial results and the possible occurrence of El Niño.

“During a meeting held today, the Board of Directors resolved to suspend the Corporation’s broiler operations or its chicken growing operations in Palawan due to continued negative results in the previous months, along with the possible occurrence of El Niño,” Swift Foods said.

Poultry producers currently face economic headwinds, including exposure to fluctuating feed costs, energy expenses and weather-related disruptions that can affect production efficiency and profitability.

The potential onset of El Niño could add pressure on poultry operations, as higher temperatures may affect chicken growth, increase cooling requirements and raise production costs.

However, Swift Foods did not disclose the extent of its losses, a timeline for resuming operations, or the suspension’s potential impact on its workforce, poultry supply, and distribution activities.

Despite the suspension, the company assured investors that its dressing plant would continue operating normally.

“The Corporation’s dressing plant operations will, however, continue as usual. This will not have a material impact on the business operations of the Issuer,” the company said.